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Please, give DETAILED EXPLANATION with all logical steps to determine the answer. Assume chat investors have recently become more risk averse, so the market risk

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Please, give DETAILED EXPLANATION with all logical steps to determine the answer.

Assume chat investors have recently become more risk averse, so the market risk premium has increased. Also, assume that the risk-free rate and expected inflation have not changed. Which of the following is most likely to occur

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